THE Securities and Exchange Commission (SEC) has issued separate advisories warning the public against an unauthorized online lending platform illegally using the identity of a legitimate financing company.
The regulator said online lending platform Bridge Cash, accessible through Bridge Cash website, was found to be an unregistered investment scheme promising high monthly returns and misrepresenting itself as affiliated with a legitimate financing firm, First Digital Finance Corp. (FDFC).
The SEC warned the public against transacting with Bridge Cash, noting that the platform was not owned, operated, authorized or endorsed by FDFC, which has denied any association with the website.
The regulator said the platform falsely used the company’s corporate name, SEC registration information and business address to create the appearance of legitimacy and regulatory authorization.
It emphasized that only financing and lending companies registered with the SEC and operating through properly disclosed and recorded online lending platforms were authorized to conduct online lending activities.
The SEC advised the public not to transact with the platform or provide personal and financial information, identification documents, banking credentials or payments related to supposed loan processing fees.
The regulator also reminded consumers that fraudulent online lending schemes often use legitimate company names, fake endorsements, and misleading claims of SEC affiliation to deceive borrowers.
In a separate advisory, the regulator identified JCPRIME Non-Specialized Wholesale Trading as another unauthorized company illegally soliciting investments from the public.
The commission said the entity, allegedly operated by Jomar Burgos Robale and Carla Marice Robale, was enticing investors with promises of seven percent monthly returns.
It said the investment scheme bore the characteristics of a Ponzi scheme, in which funds from new investors are used to pay supposed returns to earlier participants.
The SEC said JCPRIME was not registered with the commission and did not possess the secondary license required to offer or sell securities or investment contracts to the public under the Securities Regulation Code.
The regulator added that investment fraud, including Ponzi schemes, is prohibited under Republic Act 11765 or the Financial Products and Services Consumer Protection Act.
The SEC warned that individuals acting as promoters, recruiters, agents, influencers or endorsers of the investment scheme may also face criminal liability, with penalties of up to P5 million in fines or imprisonment of up to 21 years under the Securities Regulation Code and the Financial Products and Services Consumer Protection Act.
The commission urged the public to verify registered financing and lending companies and authorized online lending platforms through the SEC website and the SEC’s Check App before making financial transactions at https://sec.gov.ph.
It has also created the iMessage portal within the SEC website. The portal is an online ticketing system for filing complaints and inquiries, including reports on illegal investment solicitations and harassment from online lending platforms.
